Legal Risk Regulation Research Of China’s Internet Finance

The Internet and the relevant information technology, which rapidly sweptaround the world, has become the most important technology tool in this ere, sinceInternet technology was born in the20th century in the United States. Along with theearly simple information technology industry, the Internet gradually evolved into theInternet business, and even today the Internet Finance, the positioning of Internet alsotransition gradually from simple traditional “Internet Industry” to today “InternetWord”. The Internet Finance is an emerging industry which combines the Internetinformation technology with modern financial industry. It is one of the main modes inthe future financial industry developments. The birth of the Internet Finance promotesthe development and reform of the financial industry. However, due to its owncharacteristics, it also brings huge challenges to the traditional financial law system.The healthy development of Internet Finance plays an important role in China’seconomic development. Therefore, there requires the relevant effective regulations forthe Internet Finance by laws and regulations as well as the establishment ofsupervision and administration, in order to promote the development of Internetfinance business.As the Internet Finance is a kind of emerging things, and has no clear definitionin law, this paper began from an introduction of the word of “Internet Finance”,researched and analyzed it from different multi-aspect such as its concepts, formats,characteristics and effects. This paper made clear the nature of the Internet Finance isstill a part of modern Finance. Because of its characters like boundless, virtual andmixed business, Internet Finance faced both financial and legal risk and need to bekept watch under supervision.But traditional finance supervision system cannot befully applied to Internet Finance. Establishment of Internet Finance supervisionsystem should consider its unique characteristics and risks from various aspects ofregulatory methods, market access, legal system building and industry self-discipline.